Republican US Senate candidate Katherine Harris is calling for major changes to America’s tax system as part of her senate campaign, substituting a universal sales tax for the current income tax system.
The plan would impose a sales tax of at least 23 cents on every dollar spent on a majority of goods and services. In return, Harris would end the current system funded by income taxes. Harris would also like to eliminate income, inheritance and capital gain taxes.
Critics are also skeptical of the plan. A 2004 study by the nonprofit Institute on Taxation and Economic Policy showed the national sales tax would raise taxes on the majority of Floridians by $4,000 a year. The top 5 percent of Florida wage earners would save $61,000.
“You could fill a barn with what we don’t know about this tax,” said Matt Gardner, state tax policy director for the Institute on Taxation and Economic Policy. “It sounds good, but this is an idea that just doesn’t stand up to scrutiny.”